{"id":26045,"date":"2007-10-10T00:00:00","date_gmt":"2007-10-10T05:00:00","guid":{"rendered":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/2007\/10\/10\/the-precarious-state-of-statehouse-budgets\/"},"modified":"2024-04-14T03:53:28","modified_gmt":"2024-04-14T08:53:28","slug":"the-precarious-state-of-statehouse-budgets","status":"publish","type":"post","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/2007\/10\/10\/the-precarious-state-of-statehouse-budgets\/","title":{"rendered":"The Precarious State of Statehouse Budgets"},"content":{"rendered":"<p class=\"wp-block-paragraph\">by Pamela M. Prah, Stateline.org Staff Writer<\/p>\n\n<div class=\"floatright\">\n<figure><img decoding=\"async\" src=\"https:\/\/assets.pewresearch.org\/wp-content\/uploads\/sites\/12\/old-assets\/publications\/612-1.gif\" alt=\"Figure\"><\/figure>\n<\/div>\n\n<p class=\"wp-block-paragraph\">States awash in surpluses for the past two years are now treading water, with several desperately looking for lifelines to help them get out of budget trouble.<\/p>\n\n<p class=\"wp-block-paragraph\">A slumping housing market and skimpier sales tax collections are busting budgets from California to Florida at a time when national job growth is sluggish and consumer confidence is at a nearly two-year low.<\/p>\n\n<p class=\"wp-block-paragraph\">&#8220;The forecast is looking pretty grim,&#8221; Sujit M. CanagaRetna, a state tax expert for the Council of State Governments, said. &#8220;The implications for states are serious.&#8221;<\/p>\n\n<p class=\"wp-block-paragraph\">Experts say it&#8217;s too early to tell if all state budgets will spiral into massive deficits in the coming year, but some states already see gaps in their ledgers:<\/p>\n\n<p class=\"wp-block-paragraph\">&lt;ul &gt;<\/p>\n\n<ul class=\"wp-block-list\">\n<li>The Florida Legislature is expected to vote this Friday (Oct. 12) on a deal to dig itself out of a $1 billion hole through cuts in education, health care and courts.<\/li>\n<li>Michigan was pushed to the brinks of a statewide government shutdown because it first had to erase an $800 million deficit for its current fiscal year before it could pass a new budget for an Oct. 1 deadline. The new package relies on hikes in the personal income and sales tax and new taxes on an array of services.<\/li>\n<li>Maryland needs to bridge a looming $1.7 billion deficit. Gov. Martin O&#8217;Malley (D) has pitched bumping up personal income, sales and tobacco taxes and relying on slot-machine gambling to gin up $550 million for the state.<\/li>\n<li>Both Arizona and Virginia are looking at more than $600 million shortfalls in their current two-year budgets. Layoffs, hiring freezes and tapping rainy day funds are among ideas under consideration.<\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>A slumping housing market and skimpier sales tax collections are busting budgets from California to Florida with national job growth sluggish and consumer confidence near a two-year 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